In the conditions of increased demand for processors, chips, chips and cloud computing, Intel is an excellent option for investing in today's storm conditions.

Intel Corp. (Intc) - manufacturer of electronic devices, computer components, including microprocessors, system logic sets (chipsets), as well as data centers for storing and processing information. Headquarters is located in Santa Clare, California, USA.

Processors and components for PCs - 54%

Data centers with platforms for storage, management and information processing - 30%

Semiconductor production (memory for computers, data centers and various electronics) - 6%

Internet Things - 5%

Semiconductor production (optimized under certain sectors) - 3%

Sensors, space map for movement, data collection for machines - 2%.

In 2021, microcircuits producers received a record amount of revenue against the world of global semiconductor deficit and growing demand. So, the cumulative revenue rate exceeded $ 500 billion in 2021. Analysts expect to continue the situation and in 2022. Intel reacts immediately. Today the company is actively developing production around the world. Thus, Intel has signed an agreement on the purchase of an Israeli manufacturer of Tower Semiconductor microcircuits for $ 5.4 billion, and also invests more than 33 billion euros into the production of semiconductor components in Europe.

Also from the news: the Mobileye division of Intel, together with its partners, plans to build and launch route electrolyxi in the US in 2024. It is assumed that the route taxis will be without a driver, in which there will be 12-14 seats and there will be no steering or pedals.

The company expects a profit of $ 3.50 per share in 2022 when revenue of $ 76 billiona. Intel allocated $ 27 billion as a budget of pure capital expenditures for 2022. It will be a huge increase compared to Intel's capital expenditures in 2021, constituting $ 18.7 billion, and almost twice as much as the capital expenditure of $ 14.3 billion in 2020. Intel comes correctly by significantly increasing its investment this year, given the development of competitors, such as Taiwan Semiconductor Manufacturing.

New Intel Alder Lake processors have already made an impression on the market, taking the game crown at AMD, and Intel plans to continue to put pressure on its competitor with Raptor Lake processors. Intel estimates, Raptor Lake processors can provide a double-digit performance gain compared to the current ADER LAKE processors, as they will contain more performance cores and energy consumption. Raptor Lake processors will follow METEOR LAKE and Arrow Lake processors in 2023 and 2024.

Strengths of the company

- High loyalty to the brand

- Strong competitive presence in the microprocessor industry

- High business marginality

- steady increase in cash flows.

Weaknesses companies

- Reducing the status of the monopolist of the market

- a large relationship of income from one business segment.

- the growth of the sphere of the Internet of things (IoT)

- Development of artificial intelligence

- Trend for data storage.

- Growth of competition in microprocessor and semiconductor products

- The main business takes a lot of stake, problems with it are threatened with serious losses of income.

Financial performance companies

Profitability by EBITDA = 43.00%.

Excellent business and at a great price. Which semiconductor manufacturer has such multipliers? Also worth not to forget about the joint success of Intel with QUTECH, which develop a quantum computer. After all, quantum computers are the technology of the future.

Intel predicts the average growth of revenue in the range from 10% to 12% and gross profits from 54% to 58% each subsequent year until 2026. It is also expected that operating expenses will be reduced to 25-27%. Thus, Intel can reward patient investors with solid growth potential in the long run.

Intel has averaged target price of $ 70, which means a growth potential by 55% compared with current levels. The semiconductor giant can achieve this goal if you can execute your forecasts during the year.

Vladimir Sagalaev, Financial Analyst CMS Group of Companies